• The UOKiK initiated the second stage of proceedings concerning the takeover of control over the owner of Mila store chain by Eurocash.
• The case requires a market research.
• The decision is by no means determinative of the ruling which may be given in the future.

The activities of undertakings involved in the concentration scheme overlap in the retailing of fast-moving consumer goods (FMCG). Eurocash is an organiser of retail chains such as Delikatesy Centrum, Groszek and Lewiatan. It is also involved in wholesale of FMCG. The Mila store chain is owned by Domelius company registered in Cyprus.

In accordance with existing case-law, the UOKiK assumed the geographic market in which the undertakings compete with each other is an area within 10-15 minute drive of acquired outlet. The undertakings involved in the concentration scheme compete with each other on 21 local markets defined as above. Moreover, there is a supplier-buyer relationship between Eurocash and Domelius. Eurocash is a wholesaler of manufactured tobacco and impulse goods (i.e. goods exposed near the checkout counter), while the Mila store chain is its potential customer.

The proceedings have been moved to the second stage, because a market research is required. First of all, the UOKiK has to check the market shares of the parties involved in the concentration scheme and their competitors. This will allow to assess, if the concentration does compromise competition. The commencement of the second stage of the proceedings is by no means determinative of the ruling which may be given in the future. The President of the Office of Competition and Consumer Protection may express his conditional or unconditional approval for the concentration or may prohibit such transaction altogether.

Additional information

Pursuant to the act on competition and consumer protection, proceedings pertaining to concentration consist of two stages. The first stage of the proceedings takes up to one month; however, in particularly complex cases where there is a probability of a significant restriction of competition or where a market research needs to be carried out, such proceedings may also last longer.

Additional information for the media:

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